Forex Today: Central banks, rate cut bets and else

The Greenback managed to shrug off part of the recent steep decline on Monday, ending the session barely changed while investors kept assessing the latest release of the US labour market report.

Here is what you need to know on Tuesday, May 7:

The USD Index (DXY) bounced off three-week lows and regained the 105.00 barrier despite lower yields across the curve. On May 7, the RCM/TIPP Economic Optimism Index, Consumer Credit Change, and the speech by N. Kashkari (Minneapolis Fed) are all due.

EUR/USD extended its march north, although another test of the 1.0800 hurdle remained elusive on Monday. Germany's Balance of Trade and Retail Sales in the euro area are due on May 7, along with the speech by BuBa's J. Nagel.

GBP/USD maintained its bullish momentum well in place, albeit faltering just ahead of 1.2600 the figure at the beginning of the week. The BRC Retail Sales Monitor and the S&P Global Construction PMI are expected on May 7.

The resurgence of selling pressure in the Japanese yen helped USD/JPY reverse course and reclaim the proximity of the 154.00 region. On May 7, weekly Foreign Bond Investment figures are the only due.

AUD/USD traded in a solid fashion and broke above the 0.6600 level, flirting at the same time with so-far monthly tops. On May 7, the RBA is expected to keep its OCR unchanged at 4.35%.

Reignited geopolitical effervescence motivated WTI prices to rebound from recent peaks in the area below the $78.00 mark per barrel.

Gold prices attempted a move higher and surpassed the $2,300 mark per troy ounce while traders kept assessing the prospects of interest rate cuts by the Fed. By the same token, Silver prices rose sharply to multi-day highs north of the $27.00 mark per ounce.